I have a question about internal links:

Is it better to use a third level domain to link internally or the actual url?

Example:

From my home page I have a set of buttons on the bottom left column that lists all of the cities my team services.

Carlsbad Real Estate is currently linked like this

but I was wondering If I should link http://carlsbad(dot)northcountyluxuryhomes.com]Carlsbad Real Estate to this url

The Reason I am asking is I am thinking about removing the left navigation links on all of the City real estate pages and setting up 4-5 navigation buttons similar to what I have on my http://www(dot)northcountyluxuryhomes.com/Real_Estate_Listings/page_261602.html]real estate listings page. Then creating city specific Home value pages, real estate listings pages, etc, for each city.

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